EXCLUSIVE: Boston VC fund calls Cincinnati model unique

Representatives of Boston-based venture fund Catalyst Health Ventures were in Cincinnati on Thursday visiting Cintrifuse in hopes of receiving investment from the Cincinnati group’s Fund of Funds.

Catalyst is an early-stage health care and life sciences venture capital firm. Over a day and a half its leaders met with Cincinnati startups, sources of capital and support services to get a feel for the Queen City. Cintrifuse’s Fund of Funds will invest in other venture funds with the promise that they not necessarily invest in local startups but stay active locally.

Catalyst Managing Partner Joshua Phillips and general partner Darshana Zaveri took some time to talk with the Courier about what they thought of Cincinnati’s entrepreneurship ecosystem.

What brings you guys to Cincinnati?

Joshua Phillips: We’re always looking for other opportunities in expanding our network. We have a very strong network in New England, and as we’ve been branching out we’ve included Utah and California. We got to meet the Cintrifuse folks almost a year ago and through that introduction they’ve invited us out here to learn more about what’s going on in Cincinnati. From what we can understand, it’s a somewhat underserved market in terms of capital. We’re out here spending a very intensive day and a half meeting with different folks and learning what’s here.

What do you think of what you’ve seen of Cincinnati’s ecosystem so far?

JP: What is striking is the level of coordination and level of resources that are being put in place to really build this ecosystem from the ground up. It’s pretty impressive. There’s a number of different organizations, and Cintrifuse is clearly squarely in the middle of it. But a lot of different resources being put in place from public and private partnerships here to really begin that innovation and support it as it goes forward, so it’s pretty impressive.

Darshana Zaveri: I think that what really helped, we’ve visited other geographies but what made this visit very efficient and effective and beneficial for us was that there’s a conduit in Cintrifuse. They actually brought all these organizations together for us to meet and facilitated those interactions. Otherwise, to sort of do it on your own is difficult. They coordinated this whole thing, arranged it, put the schedule together and made sure we met startup companies, sources of capital, sources of invention – everything that makes up the ecosystem.

In terms of a model like Cintrifuse, is that something you see in a lot of other locations?

JP: No.

DZ: I have not seen it. We were just saying that in other geographies what you see lacking is this level of coordinated effort. Even if you want to go there, there isn’t that one conduit or organization that facilitates everything, so this is great.

JP: It’s interesting. A year ago we met Cintrifuse in the context of raising our third fund in the context of a potential limited partner. … We’re not connected in Cincinnati. Our personal and professional networks aren’t strong here, and it’s not a place we would have thought to reach out. However, through meeting with them and having these conversations, it makes it extremely efficient for us to be able to learn about what’s going on in Cincinnati, where no one else is doing that, that we know of.

BC: In terms of what you have seen, what do you think could happen here that would boost the ecosystem and bring it to the next level?

JP: I think this is an evolution and it’s going to take time. I don’t think there’s anything that’s going to happen in the extremely short term that’s all-of-a-sudden going to say it’s arrived. But I think what is really important is success. If you look at where we’re from in Boston and where the ecosystem is there, that’s taken decades and decades and decades to get to where it is today. And along the way you have on the health care side a variety of exceptionally successful venture-backed companies that themselves have become so successful that everyone associated with them has gone on to other things. You really need that major success story.

BC: One last thing I have to ask you: While you’ve been here, have you tried the chili?

JP: I have not on this trip, but when I was in college I visited Cincinnati and I remember Skyline as one of the institutions as well as the City View Tavern, which is still there!